The Corporate Sustainability Reporting Directive (CSRD) aims to increase the standard of environmental reporting for businesses operating in the European Union. It builds and improves on the Non-Financial Reporting Directive (NFRD). Through more detailed reporting requirements and increasing the number of businesses it applies to, the CSRD aims to reduce the omission of information often seen in ESG reporting.
The new requirements include disclosing environmental, social and governance initiatives across several categories, including: preparation, strategy, due diligence, sustainability, and risk management.
The CSRD applies to any business operating in the EU, regardless of physical location. If businesses meet the following requirements, they are subject to the CSRD standard.
Businesses must also meet at least two of the following:
Note: Even if your business doesn’t directly fall under CSRD’s scope, it’s worth noting that supply chain pressures might still make compliance relevant to you.
The CSRD reporting requirements are aligned with the European Sustainability Reporting Standards (ESRS). The ESRS criteria are below.
AssuranceLab's ESG reporting has been built according to these requirements and is flexible to enable reporting for all organisations, whether you are mandated to report or voluntarily opting to do so.